The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage banks to strengthen regulation and compliance in the sector.
The decision was announced in a circular on Tuesday, December 16, signed by the CBN’s Acting Director of Corporate Communications, Hakama Ali. The apex bank said the move is intended to reposition the mortgage banking space and ensure adherence to existing laws and regulatory guidelines.
The affected institutions are Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. The CBN stated that the action is in line with its powers under Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the bank, both institutions breached multiple regulatory requirements, including failing to meet the minimum paid-up share capital for their licence category and having insufficient assets to cover liabilities. The CBN also noted that the banks were critically undercapitalised, had a capital adequacy ratio below the required minimum, and failed to comply with several CBN directives.
Reaffirming its commitment to financial stability, the CBN stated, “The CBN remains committed to its core mandate of ensuring financial system stability.”
